Methodist Hospital Settles for $9.9 Million

     HOUSTON (CN) – The Methodist Hospital here will pay $9.9 million to settle allegations that it defrauded Medicare. Federal prosecutors say that from 2001 to 2003 the hospital inflated charges for patient care to get supplemental, or outlier, payments from Medicare.

     The federal program distributes outlier payments to hospitals for treating Medicare patients with excessively high health care costs. It is intended to make sure all patients receive necessary treatment.

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